cam a22 2 4500 357888189 CHVBK 20200107115708.0 cr ||||||||||| 160307s2016 xxu||||||---- 00 |eng-d (OCoLC)944080442 (IDSSG)000855635 SzZuIDS HSG ger rda Hachem Kinda Cheryl Verfasser aut Liquidity Regulation and Unintended Financial Transformation in China Kinda Cheryl Hachem, Zheng Michael Song Cambridge, MA National Bureau of Economic Research 2016 1 Online-Ressource Text txt rdacontent/ger Computermedien c rdamedia/ger Online-Ressource cr rdacarrier/ger NBER working paper series 21880 21880 (IDSSG)000043070 523018967 China increased bank liquidity standards in the late 2000s. The interbank market became tighter and more volatile and credit soared, contrary to expectations. To explain this, we argue that shadow banking developed among Chinaʼs small and medium-sized banks to evade the higher liquidity standards. The shadow banks, which were not subject to interest rate ceilings on traditional bank deposits, then poached deposits from big commercial banks. In response, big banks used their substantial interbank market power to restrict credit to the shadow banks and increased their lending to non-financials. A calibration of our unified framework generates a quantitatively important credit boom and higher and more volatile interbank interest rates as unintended consequences of higher liquidity standards. Song Zheng Michael Verfasser aut http://www.nber.org/papers/w21880 Full text for the University of St. Gallen Metadata Rights Reserved ids I noalma ids I IDSSG 100 1- Hachem Kinda Cheryl Verfasser aut IDSSG 490 0- NBER working paper series 21880 21880 (IDSSG)000043070 523018967 IDSSG 700 1- Song Zheng Michael Verfasser aut IDSSG 856 -- http://www.nber.org/papers/w21880 Full text for the University of St. Gallen Metadata rights reserved idssg BK020053 XK020053 XK020000 IDSSG HSG HSG ONL HONL000855635